Energy and Water Benchmarking for Hospitals

Energy and Water Benchmarking for Hospitals March 22, 2016 Presented by Dan Doyle, P.E., LEED AP Chairman, Grumman/Butkus Associates Grumman/Butkus Associates Energy Consultants and Design Engineers

Presenter Dan Doyle is the Chairman of Grumman/Butkus Associates, a firm of energy efficiency consultants and sustainable design engineers. In this role, he is responsible for the firm's marketing and recruiting. He is also the principal-in-charge for numerous designs and studies. For the past 35 years, Dan's career has focused on energy conservation and efficiency improvements in new and existing buildings, especially energy-intensive and mission critical facilities, such as laboratories, hospitals, data centers, and specialized manufacturing facilities. Dan is a frequent public speaker on sustainability topics and is active in multiple professional associations. 2

Learning Objectives Gain an understanding of what benchmarking tools are available for healthcare facilities. Learn results of an annual healthcare facilities benchmarking survey encompassing more than 100 healthcare sites, including both energy and water use. Examine typical resource usage patterns for healthcare facilities. Learn how benchmarking can be the first step in establishing a comprehensive energy and water management program for your hospital. 3

Why Should We Care About Conserving Energy and Water in Hospitals? 4

Why Should We Care About Conserving Energy and Water in Hospitals? 5

Hospitals Are Energy-Intensive Facilities Challenge: Hospitals use two to three times more energy (per sq. ft.) than office buildings 24/7/365 occupancy Demands for high airflow, filtration Lots of energy-consuming equipment (MRIs, PET scans, etc.) 6

Hospitals Are Energy-Intensive Facilities EPA estimates that the U.S. healthcare sector s current annual electricity use of 73 trillion kilowatt-hours (kwh) contributes $600 million per year to healthcare costs via increased asthma and other respiratory illness. Reducing energy usage reduces a hospital s operational costs and reduces a hospital s carbon footprint 7

ASHE Benchmarking Data: Cost Breakdown of Facility Budgets Energy represents more than half of the healthcare facility budget, according to current benchmarking data from the American Society for Healthcare Engineering. That s more than staffing, materials, and service contracts combined. 8

Hospitals Are Energy-Intensive Facilities Opportunity: $100,000 reduction in energy costs is equivalent to $2 million in new revenues (assumes 5% ROS) Research by the EPA shows that hospitals that implement energy conservation measures (ECMs) outperform competing hospitals by as much as 10% in net operating income. 1 1. EPA Study, Boosting Your Bottom Line Through Improved Energy Use, June 2005 9

So Where Do We Start This Process? Benchmarking! 10

Why Benchmark Energy Use? Is 10 MPG high or low for an automobile? Is 350 kbtu/sf/yr high or low for a hospital? Answer: Common knowledge Answer:??? 11

The Benchmarking Process Only a screening tool Doesn t explain why a building performs a certain way or how to change its performance (we ll get to that later) 12

The Benchmarking Process Use benchmarking results to initiate action plans Benchmarking only begins the improvement process If nothing else changes, don t expect your future performance to improve 13

EPA s ENERGY STAR A rating scale of 0 to 100 A rating of 50 indicates average performance A rating of 75 or above indicates top performance Eligible for an ENERGY STAR label Most well-known, widely accepted benchmarking and rating system www.energystar.gov 14

EPA s ENERGY STAR Hospitals are not compared to others entered into Portfolio Manager to determine score Until recently, used database from a 1996 EPRI Study New database from EPA/ASHE incorporated in Fall 2011 191 hospitals Average hospital size: 448,061 sq ft Average source energy intensity: 485 kbtu/sq ft Equivalent site energy intensity: 252 kbtu/sq ft The switch to the new database caused changes to most scores 15

Energy Benchmarking What else is available for hospitals? Practice Greenhealth s Sustainability Benchmarking Report G/BA s Energy and Water Benchmarking Survey ASHRAE beq limited adoption, has future potential for operational and as-built ratings Green Globes for Existing Buildings DOE Benchmark Buildings Municipal reporting (NYC, Chicago, Boston, etc.) 16

Practice Greenhealth Sustainability Benchmark Report Compilation of metrics from 220 hospitals that submitted entries to 2015 Partner for Change awards program Provides best practice metrics for energy, water, waste from the top performers Good data for goal setting Member benefit http://tinyurl.com/ PGHBenchmarkingReport 17

G/BA Benchmarking Survey 2015 Survey (2014 data) vs. ENERGY STAR 18

G/BA Benchmarking Survey Started in 1994 Most data is from similar, Midwestern facilities All data from the same time period (CY) Number and location of participants: Data Year IL IN MI WI OH IA MN Other Total Hospitals 2000 57 16 3 24 0 4 7 2 113 2001 30 5 5 20 0 6 3 0 69 2002 25 5 7 20 1 2 8 1 69 2003 40 7 4 24 1 4 9 1 90 2004 38 10 4 29 1 4 9 3 98 2005 49 10 6 29 1 7 12 3 117 2006 38 14 6 22 1 5 4 1 91 2007 40 6 2 23 0 2 5 2 80 2008 48 3 6 20 0 1 4 2 84 2009 45 3 7 29 0 2 3 2 91 2010 46 4 7 37 0 3 7 5 109 2011 63 6 7 41 0 2 7 3 129 2012 59 4 10 43 0 2 5 4 127 2013 54 3 7 29 0 1 4 4 102 2014 56 5 5 33 3 2 4 9 117 19

G/BA Benchmarking Survey 20

G/BA Benchmarking Survey Facilities with absorbers: Shown in yellow 21

G/BA Benchmarking Survey 22

G/BA Benchmarking Survey 23

G/BA Benchmarking Survey Energy Usage Intensity by Facility Size 24

G/BA Benchmarking Survey 25

G/BA Benchmarking Survey Annual Energy Cost per Bed ($/BED/YR) 26

G/BA Benchmarking Survey Total Hospital Energy Use Intensity vs. Costs, 1999-2014 27

G/BA Benchmarking Survey 28

G/BA Benchmarking Survey Facilities with purchased steam: Shown in yellow 29

G/BA Benchmarking Survey Natural Gas and Electricity Cost Trends for Hospitals, 1999-2014 31

Don t Forget the Water! Water and energy are inextricably linked: The treatment and delivery of water accounts for as much as 15% of energy consumption in many other parts of the country Energy represents 80% of a typical water bill Power plants use lots of fresh water (38% of nationwide total), and half of that evaporates By increasing efficiency through water conservation and recycling practices, your hospital can further cut its energy consumption and thus its carbon footprint Reducing water consumption will also reduce sewer charges 32

G/BA Benchmarking Survey 33

G/BA Benchmarking Survey 34

G/BA Benchmarking Survey Hospital Water Use Intensity, 2001-2014 35

G/BA Benchmarking Survey 36

G/BA Benchmarking Survey Hospital Carbon Dioxide Equivalent From Fossil Fuel and Electricity, 1999-2014 37

G/BA Benchmarking Survey The complete results of our 2015 survey, as well as historical trend data, are available at our website. There is no cost to participants just send in your data. If you would like to participate in our 2016 survey (data for CY2015), visit: http://grummanbutkus.com/hes 38

MHA Benchmarking Survey How can we help MHA develop an exclusive energy and water survey for MHA members? 39

Benchmarking Survey Survey questions from 2015 (2014 data) G/BA is now collecting data through an on-line tool 40

How Can You Use the Benchmarking Process To Improve Your Performance? Comprehensive Approach: Utility tracking Benchmarking Energy purchases/ supply-side management Operations and maintenance Retro-commissioning (RCx) Retrofit of existing building systems/equipment Building infrastructure planning New buildings, major additions & renovations Commissioning and monitoringbased commissioning (Cx, MBCx) Equipment purchasing policies Grants and rebate opportunities Recognition opportunities Financing options 41

The Financial Side of Energy Efficiency How to develop an energy management plan for your hospital or medical center Michigan Health & Hospital Association Michigan Green Healthcare Commitee 9 th Annual Conference, October, 2016

Thank You Questions? Daniel L. Doyle, P.E., LEED AP O+M ddoyle@grummanbutkus.com http://grummanbutkus.com 43